Banks aren’t exactly ‘customer friendly’. They take you for granted
There is a...
Obama has been re-elected as the President of the United States of America. Romney could not get back in the game after several mis-steps. An analysis by Harsh Desai
CNN has just called the election and announced that Barack Obama will be elected as the next President of the United States of America. He crossed the threshold of 270 electoral votes and it looks likely that he would cross 300 before the night is over. By the time the election was called, people had stopped saying that no president has won re-election with such a high unemployment rate since Franklin Delano Roosevelt (FDR). That was then, and this is now. However, President Obama was trailing Governor Romney in the popular vote but carried virtually every swing state that was in play. By riding on his coattails, the Democrats look likely to retain control of the Senate.
The humdinger predicted never materialised. Ohio—the president’s firewall—held firm till the very end. As Ohio numbers refused to break in his favour, Governor Romney, in a last ditch gamble, made some misleading ads that backfired.
The fact that his Obama’s opponent was Mitt Romney actually helped. Romney could never connect with the American electorate. Romney was too aloof and wealth, which an American could never relate to. The nature of the modern Republican Party forced him out on a limb and he could never find his way back. The choice of Paul Ryan, as vice-presidential candidate, distanced him away from the middle. Further, he got entangled by farcical comments made by his party-men on abortion. Therefore, to get elected it looked as if he would have had to distance himself from his party.
Moreover, the demographics of the United States is changing and you cannot win elections by just being a “White Man’s Party”. The sooner the Republican Party learns the lesson, the better.
The Republicans lost a historic opportunity and next time it will be Hillary Clinton. Bruce Springsteen had told us just yesterday, “I think the president has some rock star ambitions”. So America gets its first “rock star” President.
Harsh Desai has been writing the American Dairy about US Presidential elections. To access all other articles, please click here.
(Harsh Desai has done his BA in Political Science from St Xavier's College & Elphinstone College, Bombay and has done his Master's in Law from Columbia University in the city of New York. He is a practicing advocate at the Bombay High Court.)
The CBI said that the airline conspired to cheat and cause loss to SBI, Bank of India, Indian Bank, Andhra Bank, IDBI and Oriental Insurance, which had to bear claims of Rs442 crore on default of payment by Paramount Airways to the banks
The Central Bureau of Investigation (CBI) has filed a charge-sheet in a Delhi court against Paramount Airways Pvt Ltd, former CMD of Oriental Insurance Company (OICL) and four others for allegedly causing wrongful loss to five public sector banks and the public sector insurance firm against which claims of Rs442 crore were raised due to payment defaults by the airline, reports PTI.
In the charge-sheet filed before special judge Pradeep Chaddah, the CBI said the accused conspired to cheat and cause loss to State Bank of India, Bank of India, Indian Bank, Andhra Bank and IDBI and OICL, which had to bear claims of Rs442 crore on default of payment by Paramount Airways to the banks.
The CBI alleged that Chennai-based Paramount Airways had taken credit insurance from OICL for its multiple bank guarantees to cover its transactions with state-owned oil companies.
As the airline defaulted in paying to oil companies under the contract guarantee, the oil companies invoked bank guarantees and the banks in turn raised the claims of Rs442 crore on OICL, it said.
“The case was registered in July 2011 on complaint against Ramadoss and others for causing wrongful loss to the government of India i.e. OICL and five PSU banks in the content of claims of Rs442 crore lodged on OICL by the banks on account of default of payment by Paramount Airways to the banks,” the CBI said.
Besides the airline, M Ramadoss, the then CMD of OICL; M Thiagrajan, MD of the airline; V Harshvardhan, former deputy general manager of OICL; Niraj Kumar, OICL general manager; and Chandra Shekhar Tandon, DGM of OICL, have also been named as accused in the charge-sheet.
The probe agency said that Ramadoss of OICL entered into a criminal conspiracy with Thiagrajan, abused his official position and favoured the airline in issuance of 220 credit insurance policies during 2005-10.
The credit insurance policies were used in securing multiple bank guarantees from SBI, BoI, Indian Bank, Andhra Bank and IDBI to cover its transactions with PSU oil firms and to meet expenses relating to fuel, aircraft, lease, rent airport charges and others, it said.
“On default of Paramount Airways, the oil companies invoked bank guarantees and in turn, the five banks raised claims to the extent of Rs442 crore on OICL,” the agency said.
Even when some officials were reluctant to issue credit policies to Paramount Airways for want of requisite documents, Ramadoss convinced Thiagrajan to give exclusive mandate on aviation insurance to OICL, it said.
It said the credit policies were issued to Paramount in absence of proposal form and without seeing the financials and credit requirement of the Airline, without understanding the risks and without it having any re-insurance support and the banks were never roped in while accepting the risk.
“The entire sum insured was in the net of the company’s account. Claims were lodged by the banks for Rs441 crore which was to be absorbed by OICL as no recovery of this amount was possible in absence of re-insurance support (with Paramount),” the charge-sheet said.
The agency also said that Paramount was “reluctant in disclosing its financials during 2007-09 with OICL due to its poor financial health and negative credit worthiness”.
All the accused have been booked for criminal conspiracy, cheating under the IPC and also under the Prevention of Corruption Act.